Strike Energy Limited reported Friday that the first phase of a comprehensive completion, flow testing and production optimization program at the Southern Cooper Basin Gas Project in PEL 96 (Strike 66.7 percent and operator) in South Australia has commenced.

The results from this initial testing phase will be important in developing a better understanding of the project’s commercial potential, however, as has been the case for most unconventional resource plays, a more definitive understanding of project economics will only develop through a series of drilling, completion and production trials.

The 6 wells to be drilled by year end are designed for a second phase of fracture stimulation, completion and production testing trials. The design and implementation of this second round of testing will build on the data and experience obtained from the first round. Optimization of productivity, well recoveries and costs will then continue towards a decision to develop an initial project.

The first phase of the program will take 4 weeks to complete and will involve:

fracture stimulation of the Le Chiffre 1 and Klebb 1 wells

inter stage plug milling, clean up and initiation of flow back

completion of the wells to enable extended flow testing

Production testing will then continue for an extended period (expected to be at least 3 months) to provide data on gas recoveries per well and for subsequent production testing trials.

Beach Energy will undertake a similar program of activities in PEL 94 (Strike 35 percent) at the Davenport 1 well during July.

Two stages will be fracture stimulated in each well with each stage individually designed to enable a range of variables to be independently trialled. Strike’s aim is to obtain a comprehensive data set for subsequent design optimization while limiting operating risk and complexity.

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